Canadian stocks eked out some strength early Wednesday, despite investor fear of contagion from the weakest debt-ridden euro-zone economies such as Greece into bigger ones such as Italy, Spain and even France.
The S&P/TSX composite index moved up 24.72 points early in the session to 12,253.99.
The Canadian dollar fell 0.31 cents to 97.63 cents U.S.
Among Canadian stocks to watch, Enbridge Inc. executives say the company may increase the size of its proposed 800,000 barrel-per-day Wrangler crude oil pipeline after the United States postponed approval of rival TransCanada's (TRP) Keystone XL Canada-to-Texas line.
Ottawa Tuesday approved China National Offshore Oil Corp's $2-billion deal for struggling oil sands operator Opti Canada Inc.
China's Shandong Gold Group has made a billion-dollar offer to acquire Jaguar Mining.
Grocery whiz Metro Inc. said its profit fell 8% in the fourth quarter, hurt by the costs related to closing of two facilities.
ON BAYSTREET
The TSX Venture Exchange ducked back 0.12 points to 1,647.37, while the Nasdaq Canada index inched up 1.97 points to 414.94
Of the 14 Toronto subgroups, 10 regressed, weighed by gold, off 1.1%, global base metals faded 1% and materials slid 0.6%.
The four gainers were led by energy, 1.2% more energetic, information technology, clicking 0.6%, and metals and mining, 0.3% more solid.
ON WALLSTREET
In New York, stocks dropped in early trading Wednesday as more political developments in the euro-zone and fears over contagion in the European bond market kept investors on their toes.
The Dow Jones Industrials got pummeled 123.89 points, or 1%, to begin the day at 11,972.27.
The S&P 500 skidded 11.67 points to 1,246.14, while the Nasdaq Composite Index moved down 20.60 points to 2,665.60.
Mario Monti assumed the premiership in Italy Wednesday, and he was scheduled to present his new government later in the day. In Greece, Prime Minister Lucas Papademos faced a vote of confidence for his new government.
Ahead of these developments, the same uncertainty over whether the new governments will help the euro-zone dig itself out of debt continued to hang over the market.
U.S. stocks closed higher Tuesday, as a batch of better-than-expected U.S. economic data temporarily overshadowed ongoing fears about the euro-zone debt crisis.
Target reported quarterly earnings before the opening bell that blew past expectations, with same-store sales rising 4.3%.
Shares of Abercrombie & Fitch slid after the apparel retailer posted an increase in quarterly earnings that widely missed expectations. The company said its results were impacted by higher costs and economic uncertainty.
After the market close Tuesday, Dell reported solid profits but poor sales results for the previous quarter, causing share prices to dip.
Italy's 10-year bond yield topped 7% Tuesday, following a lackluster reading on third-quarter euro-zone economic growth. That level -- which Italian bonds breached for the first time last week -- is a benchmark that makes traders nervous, because Greece, Portugal and Ireland passed it shortly before receiving bailouts.
Meanwhile, the 10-year bond yield for Spain, another of the troubled economies in Europe, jumped as high as 6.3%. French yields also rose, raising concerns that the debt crisis is spreading to the euro-zone's core.
Economically speaking, inflation crept lower in October, the government reported Wednesday.
Consumer prices rose at a 3.5% annual rate in October, due to declines in energy costs. Analysts expected inflation for the month to stay flat.
Core inflation, excluding volatile food and energy prices, ticked up 0.1% in October, after rising the same amount in September. The increase was in line with expectations.
Elsewhere, October industrial production increased by 0.7%, beating expectations.
The price on the 10-year Treasury perked, driving the yield down to 2.03% from Tuesday’s 2.06%. Treasury prices and yields move in opposite directions.
Oil for October delivery was boosted $2.42 to $101.79 U.S. a barrel
Gold futures for December delivery fell $17.40 to $1,764.80 U.S. an ounce.
Related Stories
